GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with...

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REPORT ON 2008 EXPLORATION BY MEGA URANIUM LTD. ON THE GREENWICH LAKE PROPERTY, GREENWICH LAKE AREA, NTS MAP SHEET 52A/15 NORTHWESTERN, ONTARIO Tom Setterfield, PhD, P.Geo, GeoVector Management Inc. and Tony Gilman, M.Sc., Mega Uranium Ltd. April, 2009

Transcript of GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with...

Page 1: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

REPORT ON 2008 EXPLORATION

BY MEGA URANIUM LTD.

ON THE GREENWICH LAKE PROPERTY,

GREENWICH LAKE AREA,

NTS MAP SHEET 52A/15

NORTHWESTERN, ONTARIO

Tom Setterfield, PhD, P.Geo, GeoVector Management Inc. and Tony Gilman, M.Sc., Mega Uranium Ltd. April, 2009

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TABLE OF CONTENTS Page Table of Contents ……………………………………………………….. i List of Figures …………………………………………………………... ii List of Tables …………………………………………………………… ii List of Plates ……………………………………………………………. ii List of Maps …………………………………………………………….. ii Summary ………………………………………………………………... 1 1.0 Introduction …………………………………………………………….. 2 2.0 Property Description and Location …………………………………….. 2 3.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography 5 4.0 Geological Setting ……………………………………………………. 6 4.1 Regional Geology and Exploration Potential ………………….. 6 4.2 Property Geology ……………………………………………… 9 5.0 Previous Work ………………………………………………………… 13 5.1 Exploration Prior to East West/Mega …………………………. 13 5.2 Exploration by East West/Mega Previously Submitted

for Assessment ………………………………………..……….. 13 6.0 Recent Exploration by Mega Uranium ……………………………….. 14 6.1 Uranium ………………….…………………………………….. 14 6.2 Pt-Pd-Ni-Cu ………………………………………………… 18 7.0 Conclusions and Recommendations.…………………………………. 38 8.0 References ………………………………………………………………. 40 APPENDIX A: Certificates of Qualifications APPENDIX B: Certificates of Assay

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LIST OF FIGURES Page 1. Location of the Greenwich Lake Property …………………………….. 3 2. Claims Comprising the Greenwich Lake Property ……………………… 4 3. Regional Geology of the Lake Superior Area …………………………. 7 4. Regional Geology of the Greenwich Lake Area ………………….…… 8 5. Regional Geology of Mid-Continental North America ……………… 10 6. Geology of the Greenwich Lake Property …………………………… 11 7. Drill Holes on the Greenwich Lake Property ……………………….… 12 8. Historical Drill Holes, 2007 Trenches …..…………………………… 15 9. Waypoints on an eU/eTh Background ………………………………….. 16 10. Structure, Lineaments and Mapped Dikes, Greenwich Lake Property .. 19 11. Location of the Main Zone of the Thunder Bay North Deposit ……… 20 12. Regional Magnetics of the Greenwich Lake Property ………………… 21 13. Property Scale Magnetics of the Greenwich Lake Property ..………… 22 LIST OF TABLES Page 1. Claims Comprising the Greenwich Lake Property .…………………… 5 2. Information on Waypoints …………………………………………….. 17 LIST OF PLATES Page 1. Christianson Showing ............................................................................. 17 LIST OF MAPS (in pocket) 1. Claims Comprising the Greenwich Lake Property 2. Location of Waypoints and Samples on the Greenwich Lake Property

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SUMMARY Mega Uranium Ltd. owns the 16 claim/2284.86 ha Greenwich Lake property in the Greenwich Lake area northwest Ontario. The property occurs in migmatites and orthogneisses of the Quetico Subprovince. The property features the Christianson Fault, a north-northwest trending fault infilled with breccia and radioactive pyrite. Results of up to 2.4% U3O8 have been recorded historically from this area. Mega Uranium has evaluated the Greenwich Lake property for uranium. Initial evaluation indicated that there were eU/eTh anomalies that remained untested after the 2007 trenching program. A number of these anomalies were field checked in 2008-it was found that the rocks corresponding to these anomalies were generally anomalously radioactive, but not in economically significant amounts. Most of this anomalism is due to pegmatite dikes with radioactivity somewhat higher than background. One sample of such a dike and one sample from the Christianson showing were analyzed-uranium results were disappointing. Mega now feels that the uranium potential of the Greenwich Lake property is not worth pursuing. Magma Metals has discovered what may well turn out to be an economic deposit of Pt-Pd-Ni-Cu 4 km west of the Greenwich Lake property, associated with north-northwest trending diabase dikes. Similar dikes occur on the Greenwich Lake property, and the magnetic data suggests that there may be as yet unmapped diabase dikes on the property. Several excellent structural/magnetic targets exist. The potential of the property for Pt-Pd-Ni-Cu mineralization is thus considered to be high. Exploration to evaluate the Pt-Pd-Ni-Cu potential is recommended. Field checking of the known diabase dikes and the prospective magnetic anomalies should be undertaken. Establishing the presence of additional mafic/ultramafic dikes would upgrade the property considerably. Consideration should be given to collecting till samples down-ice from prospective magnetic anomalies, and to processing these tills for minerals indicative of mafic/ultramafic rocks or of mineralization. Magma Metals has indicated that their mineralization is associated with conductors-consideration should be given to flying a tightly spaced airborne magnetic/EM survey on the property. The survey should be flown in an east-west direction. If there is sufficient encouragement, then IP surveying and diamond drilling should be performed.

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1.0 INTRODUCTION Mega Uranium Ltd. (Mega) owns 100% of the Greenwich Lake property in the Greenwich Lake area northwest Ontario (Fig. 1). The property was originally staked by East West Resources Corporation (East West) and explored by East West and later Mega for its perceived uranium potential. Exploration was not successful, but potentially economic Pt-Pd-Cu-Ni mineralization was encountered during recent exploration by Magma Metals Limited on a property immediately west of the Greenwich Lake property (news release, April 8, 2009; www.magmametals.com.au). A review of the geology, geophysics and regional structure of the Greenwich Lake property by Mega suggests that this property too might have the potential for Pt-Pd-Cu-Ni mineralization. This report describes work conducted in 2008 and early 2009 by Mega on the Greenwich Lake property. The 1983 North American Datum (NAD83) co-ordinate system is used in this report. The Greenwich Lake property is in Universal Transverse Mercator (UTM) Zone 16N. Assessment reports cited in the references are available on the website of the Ontario Ministry of Northern Development and Mines (www.geologyontario.mndm.gov.on.ca). The AFRI (Assessment File Research Imaging) number is provided wherever possible for each assessment report. All monetary figures quoted in this report are in Canadian dollars. 2.0 PROPERTY DESCRIPTION AND LOCATION The Greenwich Lake property consists of 16 claims totaling 141 claim units in the Greenwich Lake area in the Thunder Bay Mining Division (Fig. 2; Table 1; Map 1). The claims are variably registered either 100% to Mega or 50% to Mega, in which case the remaining 50% is registered to East West Resources corporation (Table 1). An existing agreement between Mega and East West transfers 100% ownership in all the 16 claims on the property to Mega. The property is 2284.86 ha in area and is centered at approximately 363000E/5407000N (UTM Co-ordinates) or 88º52’W/48º48’N (latitude/longitude) in National Topographic System (NTS) 1:50,000 map sheet 52A/15. The Greenwich Lake property consists of unpatented, unsurveyed claims, for which the mineral rights are 100% owned by Mega. The mineral rights give Mega the right to explore for ore on the claims, subject to a 400' surface rights reservation around all lakes and rivers, and a 300' surface reservation around major roads (this may be waived by the Crown). Unpatented claims require work expenditures of at least $400 per 16 hectare claim unit in the first two years, and $400 per year thereafter (by the anniversary of their recording date); all claims are in good standing at the time of writing (Table 1). There are no known mineral reserves on the property, and no environmental liabilities accruing to Mega.

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Figure 1: Location of the Greenwich Lake Property

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360000 361000 362000 363000 364000 365000 366000

4244233

360000 361000 362000 363000 364000 365000 366000

Figure 2: Claims Comprising the Greenwich Lake Property

1 1.5 2 Kilometersl

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Table 1: Claims Comprising the Greenwich Lake Property

Township/Area Claim Number

Recording Date

Claim Due Date

Registered Ownership

Claim Units

Area (ha)

GREENWICH LAKE 3014745 2004-Nov-09 2009-Nov-09 50 % 4 68.49GREENWICH LAKE 3014754 2004-Nov-09 2009-Nov-09 50 % 8 141.46GREENWICH LAKE 4207834 2005-Jun-06 2010-Jun-06 50 % 2 22.97GREENWICH LAKE 4211690 2006-May-03 2009-May-03 50 % 10 175.56GREENWICH LAKE 4211691 2006-May-03 2009-May-03 50 % 4 68.10GREENWICH LAKE 4211692 2006-May-03 2009-May-03 50 % 16 256.50GREENWICH LAKE 4211693 2006-May-03 2009-May-03 50 % 8 142.23GREENWICH LAKE 4211694 2006-May-03 2011-May-03 50 % 2 41.20GREENWICH LAKE 4211695 2006-May-03 2014-May-03 50 % 1 11.64GREENWICH LAKE 4244231 2008-Nov-28 2010-Nov-28 100 % 16 256.51GREENWICH LAKE 4244232 2008-Nov-28 2010-Nov-28 100 % 16 253.51GREENWICH LAKE 4244233 2008-Nov-28 2010-Nov-28 100 % 16 257.21GREENWICH LAKE 4244234 2008-Nov-28 2010-Nov-28 100 % 16 270.69GREENWICH LAKE 4244235 2008-Nov-28 2010-Nov-28 100 % 3 65.16GREENWICH LAKE 4244236 2008-Nov-28 2010-Nov-28 100 % 16 237.72GREENWICH LAKE 4244237 2008-Nov-28 2010-Nov-28 100 % 3 15.91Total 141 2284.86 3.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Access to the Greenwich Lake property is reasonable. The bulk of the property, west of Greenwich Lake itself, can be accessed via a series of lumber roads which trend east and then north from Highway 527. (note that these roads are not shown on Figure 1 because they are too new to appear on any maps; they can be clearly seen on Google Earth) The eastern portion of the property is accessible from Highway 17 (Trans Canada Highway) via the road to the Ouimet Canyon Provincial Park and subsequently by logging roads (Fig. 1). The property is 50 km northeast of Thunder Bay, a city with a long mining history and home to personnel with the skills to work in the mining industry. Water is abundant in the region, and the property contains gravel roads which could be upgraded to all-weather status if necessary. Suitable locations for constructing mineral processing facilities are abundant on the property. The climate of the project area is continental in nature, with cold winters (-10 to -35ΕC) and warm summers (+10 to +35ΕC). Seasonal variations affect exploration to some extent (geological mapping can not be done in the winter, geophysics and drilling are best done at certain times of the year etc.), but the climate would not significantly hamper mining operations.

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The property has gently rolling to moderately rugged topography with a maximum relief of approximately 60 m. Elevation varies from 415 to 505 m Above Sea Level. Approximately half of the 10 km long, up to 850 m wide Greenwich Lake occurs on the property, as do several smaller lakes (Fig. 2; Map 1), but in general the property is dominated by forest and swamp. Parts of the property have been logged recently and in the past, so the present forest is second growth, a mixture of jackpine, spruce, birch and poplar trees; swampier areas contain small spruce trees and alders. The bulk of the property is covered by thin overburden, and outcrop density is moderate. 4.0 GEOLOGICAL SETTING 4.1 Regional Geology and Exploration Potential The Greenwich Lake property is proximal to the Nipigon Plate, which defines an aulacogen (subsidiary or failed rift) off the main Mid-continent Rift (Franklin, 1982; Drost, 2001). The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig. 3). The Superior Province in this region is subdivided into the Abitibi, Wawa, Quetico, Wabigoon and English River subprovinces (Fig. 3). The Abitibi, Wawa and Wabigoon subprovinces are typical granite-greenstone subprovinces, whereas the Quetico and English River subprovinces are composed mainly of (metamorphosed) sediments (Thurston, 1991). The Nipigon Plate/aulacogen cross-cuts all the geological entitities mentioned above. The basin associated with this rift served as a locus for sedimentation at approximately 1340 Ma, and was reactivated as a locus for magmatism at approximately 1100 Ma, during the main (Keweenawan) igneous events associated with the Mid-continent Rift.

The 1340 Ma Sibley Group, dominated by red bed sandstones, is preserved within the aulacogen (Fig. 4); this may be due to early movement along the rift-bounding fault system (Franklin et al., 1980) or sagging of Middle Proterozoic crust in this region (Cheadle, 1986). The group is interpreted to have been deposited in an alluvial-playa lake environment (Cheadle, 1986). Sibley Group sediments crop out extensively in the southern part of the aulacogen (Fig. 4), but have also been intersected in drill holes in the northern part, where they are covered by Nipigon sills (East West Resource Corporation web site). The 1100 Ma Keweenawan Supergroup was deposited within the Mid-continent Rift (Sutcliffe, 1991). The lower part of the supergroup is dominated by subaerially extruded basalts, with lesser rhyolites (Green, 1982; Sutcliffe, 1991), and the upper part is comprised mainly of sandstone, shale and conglomerate. Mafic magmas such as the Duluth Complex, the Logan Sills and the Nipigon Sills form the bulk of the Keweenawan intrusive magmatism. The aulacogen served as the locus for intrusion of Nipigon sills during the Keweenawan (Fig. 4).

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km I Figure 3: Regional geology of Lake Superior Area, modified after Thurston (1991). NP: Nipigon Plate; red dot is the location of the Greenwich Lake property.

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5440000

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Figure 4: Regional Geology of the Greenwich Lake Area

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odified After Ontario Geological Survey 199

300000 320000 340000 360000

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The Sibley Basin is considered prospective for uranium deposits based on it superficial similarities with the Athabasca Basin, and the presence of uranium showings within and adjacent to the Sibley Basin (Scott, 1987). The basin underwent a staking rush for uranium in 2006 (www.bentonresources.ca). The Greenwich Lake property is approximately 6 km west of the nearest mapped occurrence of Sibley Group sediments (Fig. 4). Because of its proximity to a portion of the Mid-continent Rift, the Greenwich Lake property may have potential for magmatic metal deposits. The mafic to ultra-mafic magmatism that accompanies such large scale intra-crustal continental rifting events is responsible for the majority of the world’s Ni-Cu-PGE deposits. Notably the world’s largest Ni-Cu-PGE deposit, Noril’sk, in Siberia, is found within such an intra-crustal rifting site known as the Siberian traps (Eckstrand and Hulbert, 2007). Figure 5 shows the location of the Greenwich Lake property in relation to the major Ni-Cu-PGE deposits in the Mid-continent Rift. There are five major deposits shown on this figure: 1.) North American Palladium’s Inc., Lac De Iles Mine (currently placed on care and maintenance); 2.) Marathon PGM Corp., Marathon Deposit; 3.) Duluth Metals Inc., Duluth Deposit; 4.) Kennecott Minerals Inc., Eagle deposit; and 5.) Magma Metal’s Inc., recently discovered Thunder Bay North deposit. The Thunder Bay North deposit is adjacent (4 km to the west) to the Greenwich Lake property. Recent intersections from the Thunder Bay North property include 40.45 m grading at 7.12 g/t Pt+Pd, 0.84% Cu and 0.41% Ni, which includes 9.00 m grading 10.68 g/t Pt+Pd, 1.21% Cu and 0.50% Ni (April 8, 2009 news release; www.magmametals.com.au). 4.2 Property Geology A large area including the Greenwich Lake property was mapped by Carter (Fig. 6; 1979), who determined the property to be underlain by east-trending migmatites derived from sediments (wackes), in contact with variably metamorphosed and migmatized Archean monozonites. These rocks form part of the Quetico Subprovince (Fig. 3), and are intruded by minor northwest-trending diabase dikes, possibly associated with the Keweenawan age Nipigon sills (see above). The main feature of economic interest discovered to date is the Christianson showing, which occurs within the north-northwest trending Christianson Fault (Fig. 7). The fault contains fault breccia, including clasts of Sibley Group sediments, along with abundant radioactive pyrite (Scott, 1987). Hematitic float interpreted to have originated in the fault ran 2.4% U3O8.

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r-----------, Mid-Continent Rift Simplilied Geology CANADA North AmeficBn PBliadium Lac de$ II .. ~ MiM [email protected](Ope nPit) 14ml(!!5.3gA PdlU nde!;'"ound)

IOOIVN MagIN Meta ls Inc. Thunder BQy Norlh DepoSit

OIJlulh Metals· Duluth Dejlosit ( 49M!@n,6%Cu,0.2% Nt &0.6 g.rt Pt+Pd+Au

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Greenwith Lake Pr<>!U'rt;r

Kenneccll · Eagle DellO$it 3.6 MI@ 3.8% Ni. 3.0% Cu 3. 1.6 gil Pt ' Pd+Au

Figure 5: Regional Geology of Mid-Continental North America displaying Major PGE, Ni-Cu deposits and generalized Geology. Figure adapted from Magma Metals Inc.

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Figure 6: Geology of Greenwich Lake Property. Geology digitized from Ontario Geological Survey Preliminary Map P.2249, Geology Greenwich Lake Area.

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Figure 7: Historical Drill Holes on the Greenwich Lake Property 358000 360000 362000

• Drill Hole

\ Christianson Fault

5412000 , ',, '-------"hlG:j

5410000 + +

5408000 +

5406000 +

5404000 + +

5402000 + +

Drill Hole Locations from MNDM Database

+

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5.0 PREVIOUS WORK 5.1 Exploration Prior to East West/Mega In 1921 T.L. Tanton discovered a vein described as containing quartz, marcasite and galena near the western shore of the southwestern part of Greenwich Lake. In 1949 T. Christianson discovered radioactivity in this vein, which subsequently became known as the Christianson Fault (Carter, 1983). In 1954, Pan Canadian Development Co. Limited drilled 16 holes totaling 402 m on the Christianson Fault (Ager, 1954). Best results were 3’ @ 0.5% U3O8 and 3.25’ @ 0.8% U3O8. Univex Exploration and Development Corporation flew a radiometric survey over much of the present Greenwich Lake property in 1969 (Oja, 1969). They drilled holes G-1 to G-14, G-36 to G-41 G-57 to G-60 and P-1 to P-6 in 1969 and 1970 for a total of 1290 m (Chisolm and Oja, 1970a; b; Oja, 1970). These holes are mainly drilled in the north-central part of the present property (Fig. 7), and are not well documented. Consolidated Monarch Metals Limited drilled holes 75-1 to 75-6 on the Christianson Fault in 1975 for a total of 405 m (Heshka, 1975a; b). No anomalous uranium was encountered. In 1976, Rio Tinto investigated a block of ground that comprises the southern third of the present Greenwich Lake property (Benkis, 1977). They were most interested in the potential of pegmatite dikes that they mapped, and that intrude both the felsic intrusives and the migmatized sediments on the property. They mapped the property, conducted a scintillometer survey, blasted 14 trenches and drilled holes RTG1 to RTG3 for a total of 506 m. Anomalous but not economic uranium values were encountered during drilling (Benkis, 1976a; b). During mapping, they interpreted the presence of clasts of Sibley Group sediments within the Christianson Fault. In 1978, Greenwich Lake Exploration Ltd drilled 21 holes totaling 1227 m in the southern part of the Greenwich Lake property, and excavated 31 trenches (Christianson and Fairbairn, 1978a; b). This work is not well documented. They commissioned a TURAM and an IP survey in 1979 (Webster, 1979). In 1982, Greenwich Lake Exploration Ltd drilled hole 82-1 near the Christianson Fault, but ran out of funding before the fault could be intersected (Fairbairn, 1982).

5.2 Exploration by East West/Mega Previously Submitted for Assessment East West and Mega originally acquired the Greenwich Lake property because of its perceived uranium potential. An Athabasca Basin model was favored-the property had three major attributes: i) its proximity to the presently exposed Sibley Basin; ii) the recorded occurrence of Sibley Group clasts in the Christianson Fault, suggesting that the

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basin covered the property prior to recent erosion; and iii) the structurally controlled Christianson showing. East West/Mega commissioned Terraquest Ltd to fly a magnetic/VLF-EM/radiometric survey over the entire property (Barrie, 2007; property was larger than the present property). The survey was completed on 100 m spaced, north-south flight lines in November, 2006. The magnetic data reflected the east-northeast trending lithological grain of the property. The radiometric data showed a number of discrete total count radiometric anomalies. East West/Mega excavated eight trenches in 2007 to test total count radiometric anomalies and magnetic highs (East West was the operator). Nothing of significance was found in the trenches (results previously submitted for assessment). 6.0 RECENT EXPLORATION BY MEGA URANIUM 6.1 Uranium Mega took over owner-ship of the Greenwich Lake property in 2008. In addition to compiling recent work on the property, Mega reprocessed the geophysical data to produce an eU/eTh (Equivalent Uranium/Equivalent Thorium) map (Fig. 8). eU/eTh ratios are commonly considered to reflect the amount of hydrothermal uranium present in any one area. It was immediately apparent that the neither the 2007 trenching nor the historical drilling had tested the eU/eTh anomalies (Fig. 8). The decision was thus made to field check several eU/eTh anomalies. One day was spent examining eU/eTh anomalies in the field in the southern part of the property. A selection of anomalies of variable strength was visited. Locations visited (waypoints) are shown in Figure 9 and on Map 2; waypoint information is provided in Table 2. The truck was left at waypoint 383; a trail made by East West led to a trench close to the Christianson showing (waypoint 387). Other eU/eTh anomalies were visited by traversing through the bush. The rock type encountered in the field varied from migmatite (apparent melted sediment) to granitoid. The background radiometric readings were on the order of 200 counts per second (cps). Pegmatite dikes with readings up to 3,000 cps were present locally. The Christianson showing occurs in a small stream. It consists of a 0.5 m wide fault zone trending 340 and dipping 70º east. The zone is 50 to 80% pyrite, and 20 to 50% clasts of altered country rock (Plate 1). Scintillometer readings vary from 1,000 to 13,000 cps. The showing occurs on an eU/eTh anomaly (Fig. 9). Other eU/eTh anomalies are also associated with zones of above background radioactivity, justifying the use of this processing technique as an exploration tool. However, the eU/eTh anomalies were found to be caused by pegmatite/coarse-grained granitoids with levels of activity that were not economically significant. This is consistent with Rio Tinto’s more detailed evaluation of the pegmatites.

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Figure 8: Historical Drill Holes, 2007 Trenches on the Greenwich Lake Property

• Drill Hole

.A. 2007 Trench

5410000 +

5408000 +

5406000

5404000 +

Drill Hole Locations from MNDM Database

358000 360000 362000 364000 366000

Background: eU/eTh Anomaly Map Using Data from 2006 Terraquest Survey

368000

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Figure 9: Waypoints on eU/eTh Background (southern part of Greenwich Lake Property)

398 • Waypoint

Background: eU/eTh Anomaly Map Using Data from 2006 Terraquest Survey

361500 362000 362500 363000

o 300 600 MlillArs

363500 364000

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17

Table 2: Information on Waypoints Waypoint Easting Northing Description Sample 383 361381 5404661 Parking spot 384 361849 5404713 Trench: Massive granitoid (150 cps) with

fractures/quartz veins up to 230 cps

385 363347 540971 Trench/stripped area. White to pink granitoid with irregular pegmatite zones up to 350 cps.

386 363716 5405015 Trench. Migmatite cut by pegmatite dikes up to 1 m wide. Dikes up to 3,000 cps

GR487

387 363783 5404982 Christianson Showing. 0.5 m wide fault zone trending 340, dipping 70º east. 80% pyrite, 20% clasts. Varies from 1,000 to 13,000 cps

GR488

388 363608 5404959 Moderate eU/eTh anomaly. Granitoid, cps=300, with 1 m2 zone of pegmatite, cps=2500

389 363306 5404894 Moderate eU/eTh anomaly. Large outcrop of migmatite, with coarse-grained patches, cps=700

390 362953 5404792 Strong eU/eTh anomaly. Small outcrop of massive pegmatite, cps=650

391 363047 5405024 Granitoid, cps=190. Two drill holes nearby 392 363055 5405313 Strong eU/eTh anomaly. Small outcrop of coarse-

grained migmatite, cps=2,000

393 363084 5405358 Strong eU/eTh anomaly. Fine-grained migmatite, cps=400

394 363000 5405315 Strong eU/eTh anomaly. Small outcrop of fine-grained migmatite, cps=1,000

395 362869 5405317 Strong eU/eTh anomaly. Old trench. Pegmatite, cps=1,000

Plate 1: Christianson Showing-fault breccia with pyrite cement

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18

Two samples were taken-sample GR487 from the pegmatite dike with the highest reading encountered (waypoint 386), and sample GR488 from the Christianson showing (waypoint 387). Sample GR487 returned a U value of 12.5 ppm, and sample GR488 had a U value of 7.6 ppm (Appendix B). In view of these disappointing assay values and the general lack of extensive zones of significant radioactivity, Mega has concluded that the uranium potential of the Greenwich Lake property is not worth pursuing. 6.2 Pt-Pd-Ni-CU Mapping by the Ontario Geological Survey indicates that the diabase dikes occur along north to northwest trending recessively weathered topographic lineaments. These dikes cross-cut the regional structural trend in the area, which is generally N70E. Outcrops within the topographic lineaments are noted as sparse (Carter, 1979). Figure 10 displays local and regional structure from the OGS along with a topographic lineament analysis completed by Mega. It should be noted that there are several north to northwest trending lineaments on the Greenwich Lake property that are considered prospective areas to be underlain by mafic dikes and thus targets for Pt exploration. Numerous historic drilling logs also note the presence of mafic dikes within the property at depth. Many of these dikes are noted to contain up to 3% disseminated sulphides (eg. Heshka, 1975b, Christianson and Fairbairn, 1978b). It is common in areas of Ni-Cu-PGE deposits for the mafic to ultramafic rocks to contain disseminated sulphides (Eckstrand and Hulbert, 2007). The locations of all property scale faults and regional scale faults mapped by the OGS (Carter, 1979) are also shown on Figure 10. Greenwich Lake itself is considered by the OGS to represent a recessively weathered northwest trending late regional fault and is documented to exhibit fault displacement. The property is further cut by late northeast-southwest brittle faults (Carter, 1979). According to Magma Metals (www.magmametals.com.au, 2009), these late brittle faults are important controls on mineralization at the Thunder Bay North Deposit. The Thunder Bay North deposit is located approximately 4 km west of the Greenwich Lake Property (Fig. 11) and is underlain by similar geology (i.e. migmatites and granites) to the Greenwich Lake property. The main mineralized zone (Fig. 11) at the Thunder Bay North deposit is located beneath Current Lake and is on the order of 1500 m long by 40 m wide. Similar to Greenwich Lake, Current Lake is a regional scale northwesterly trending recessively weathered fault. Magma Metals discovered the Thunder Bay North deposit by targeting several large discordant magnetic anomalies in the vicinity of the Current Lake area (www.magmametals.com.au, 2009). As displayed on Figure 11, the main zone is co-incident with the major regional magnetic anomaly termed the Current Lake Intrusive Suite (Fig. 12), which cross-cuts the regional E-W tectonic fabric. Figure 12 displays both regional and property scale magnetics, and Figure 13 shows the property scale magnetics derived from the 2006 Terraquest survey. A prominent north-northwest trending magnetic anomaly occurs in the southwestern portion of the Greenwich Lake property (Anomaly 1 on Fig. 13). This anomaly is considered analogous

Page 22: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

19

"

, ,

"'000 "'000

, ' 1 ,

, ,

, ,

, ,

, ,

~ I , I

, ,

\ \

\ \

\ \

\ \

\ \

\

\\, ____ " j t---T----'i'-r+----L------'-----' / J'

"

, ,

, , 9'

, ,

, ,

f

I !

, ,

I , v

t , ,

, , , ,

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Legend

24 Kilometers

Greenwich Property Regional Faults

. Greenwich Property Topo Lineaments

Property Scale Faults

D Greenwich Lake Property ~ Mapped Dyke

"'000 """'" """'" "'000 Figure 10: Structure, Lineaments and Mapped Dikes of the Greenwich l ake Property. North to north of northwest lineaments are considered prospective targets to be underlain by mafic to ultra-mafic dykes

Page 23: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

20

355000 356000 357000 356000 359000 360000 361000 362000 363000 364000 365000 366000

, I \ ( I

\ ' i~ \ p I \ \ I \ , \ ' • I ,

\ \ I ,

~~ 0 \ A : Q~ " . 1\ ~ l l ,> ,

~"; l \l : '\, \

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<::l ---=- .', C\ ..r:=\ Legend

- - Greenwich Property Regional Faults

c::::::::J Magma Melals TBN Deposit Footprint

I O_ O'_~ 1 2 3 4 I . = = Kilometers c::::J Greenwich Lake Property

I~~~~~~~~~~~I 355000 356000 357000 358000 359000 360000 361000 362000 363000 364000 365000 366000

Figure 11: The location of the main zone at the Thunder Bay North (TBN) deposit and the Greenwich Lake Property. The text denotes the best drill results as displayed on Magma Metals Inc. website. (hllp:/lwww.magmametals.com .au. 2009).

Page 24: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

21

Figure 12: Regional Magnetics of the Greenwich Lake Property. Displaying The Regional Magnetics and the Greenwich Lake Property Magnetics. Regional Magnetics Georeferenced from Magma Metals Website wilh PI Grades from Drilling Displayed. (htlp:llwww.magmametals.com.au. 2009)

Page 25: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

22

,

Legend

Greenwich Property Mag Anomalies c:::J Greenwich Lake Property

c:::J Lakes • - _. Geologic Contacts ~

Figure 13: Property Scale Magnetics of the Greenwich Lake Property. The figure displays the geologic contacts, maped dikes, and prominent magnetic anomalies that cross cut the regional tectonic fabric. These anomalies are considered prospective areas to be underlain by mafic to ultra-mafic dikes.

Page 26: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

23

to the magnetic anomaly associated with the Current Lake Intrusive Complex which hosts the Thunder Bay North deposit. The magnetic signature and structural orientation of Anomaly 1 make it the most prospective Pt-Ni-Cu target on the Greenwich Lake property. Figure 13 displays what are considered to be the most prospective magnetic anomalies of the Greenwich Lake property (in yellow). The mapped diabase dikes and the geological contacts are also shown. The magnetic anomalies that occur in an approximately east-west orientation are interpreted to be related to the regional tectonic fabric and likely do not represent mafic dikes. 7.0 CONCLUSIONS AND RECOMMENDATIONS Mega Uranium has evaluated the Greenwich Lake property for uranium. Initial evaluation indicated that there were eU/eTh anomalies that remained untested after the 2007 trenching program. A number of these anomalies were field checked in 2008-it was found that the rocks corresponding to these anomalies were generally anomalously radioactive, but not in economically significant amounts. Most of this anomalism is due to pegmatite dikes with radioactivity somewhat higher than background. One sample of such a dike and one sample from the Christianson showing were analyzed-uranium results were disappointing. Mega now feels that the uranium potential of the Greenwich Lake property is not worth pursuing. Magma Metals has discovered what may well turn out to be an economic deposit of Pt/Pd-Ni-Cu 4 km west of the Greenwich Lake property, associated with north-northwest trending diabase dikes. Similar dikes occur on the Greenwich Lake property, and the magnetic data suggests that there may be as yet unmapped diabase dikes on the property. Several excellent structural/magnetic targets exist. The potential of the property for Pt/Pd-Ni-Cu mineralization is thus considered to be high. Exploration to evaluate the Pt-Pd-Ni-Cu potential is recommended. Field checking of the known diabase dikes and the prospective magnetic anomalies should be undertaken. Establishing the presence of additional mafic/ultramafic dikes would upgrade the property considerably. Consideration should be given to collecting till samples down-ice from prospective magnetic anomalies, and to processing these tills for minerals indicative of mafic/ultramafic rocks or of mineralization. Magma Metals has indicated that their mineralization is associated with conductors-consideration should be given to flying a tightly spaced airborne magnetic/EM survey on the property. The survey should be flown in an east-west direction (note that the Terraquest survey was flown north-south, which is not the ideal direction for the present style of mineralization). If there is sufficient encouragement, then IP surveying and diamond drilling should be performed. 8.0 REFERENCES Ager, D.R. 1954. Drill Log, Holes 1 to 16. Assessment Report, Pan Canadian

Development Co. Limited. (AFRI File No. 52A15SW0017), 38 p.

Page 27: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

24

Barrie, C. 2007. High Resolution Magnetic, XDS VLF-EM & Radiometric Airborne

Survey, Greenwich Project, Thunder Bay, Ontario. East West Resource Corporation/Mega Uranium Ltd. Internal Report Submitted for Assessment, 37 p.

Benkis, R.A. 1976a. Drill Log, Holes RTG-1. Assessment Report, Rio Tinto Canadian

Exploration Ltd. (AFRI File No. 52A15SW0012), 11 p. Benkis, R.A. 1976b. Drill Logs, Holes RTG-2 and RTG-3. Assessment Report, Rio

Tinto Canadian Exploration Ltd. (AFRI File No. 52A15SW0010), 30 p. Benkis, R.A. 1977. N.T.S. 52-A-15 MW Option, Greenwich Lake Area, Ontario:

Geological Report. Assessment Report, Rio Tinto Canadian Exploration Ltd. (AFRI File No. 52A15SW0008), 25 p.

Carter, M.W., 1979, Greenwich Lake Area, District of Thunder Bay. Ontario Geological

Survey, Preliminary Map P.2249, scale 1:15,840. Carter, M.W. 1983. Geology of the Greenwich Area, District of Thunder Bay. Ontario

Geological Survey Open File Report 5427, 49 p. Cheadle, B.A. 1986. Alluvial-playa sedimentation in the lower Keweenawan Sibley

Group, Thunder Bay District, Ontario. Canadian Journal of Earth Sciences, v.23, pp. 527-542.

Chisolm, L. And Oja, R.V. 1970. Drill Logs. Assessment Report, Univex Exploration

and Development Corporation (AFRI File No. 52A15SW0016), 13 p. Chisolm, L. And Oja, R.V. 1970. Drill Logs. Assessment Report, Univex Exploration

and Development Corporation (AFRI File No. 52A15SW0014), 12 p. Christianson, D.E. and Fairbairn, D. 1978a. Drilling and Trenching. Assessment

Report, Greenwich Lake Exploration Ltd. (AFRI File No. 52A15SW0007), 16 p. Christianson, D.E. and Fairbairn, D. 1978b. Drill Logs. Assessment Report, Greenwich

Lake Exploration Ltd. (AFRI File No. 52A15SW0011), 31 p. Drost, A. 2001. Synopsis of geology, metallogeny and mineral potential, Nipigon Basin

signature site. Internal Ontario Geological Survey Memorandum, 3 p. Eckstrand, O.R., and Hulbert, L.J., 2007, Magmatic Nickel-Copper-Platinum Group

Element Deposits, in Goodfellow, W.D., ed., Mineral Deposits of Canada: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 205-222.

Page 28: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

25

Fairbairn, D. 1982. Drill Log, Hole 82-1. Assessment Report, Greenwich Lake Exploration Ltd. (AFRI File No. 52A15SW0006), 3 p.

Franklin, J.M. 1982. The Sibley Group. In Proterozoic geology of the northern Lake

Superior Area. Geological Association of Canada Field Trip Guidebook, Trip 4, pp. 32-41.

Franklin, J.M., McIlwaine, W.H., Poulsen, K.H. and Wanless, R.K. 1980. Stratigraphy

and depositional setting of the Sibley Group, Thunder Bay district, Ontario, Canada. Canadian Journal of Earth Sciences, v.1, pp. 633-651.

Green, J.C. 1977. Keweenawan plateau volcanism in the Lake Superior region.

Geological Association of Canada Special Paper 16, pp. 407-422. Heshka, W. 1975a. Drill Logs, Holes 75-1 to 75-6B. Assessment Report, Consolidated

Monarch Metals Limited (AFRI File No. 52A15SW0013), 25 p. Heshka, W. 1975b. Drill Logs, Holes 75-1 to 75-6B. Assessment Report, Consolidated

Monarch Metals Limited (AFRI File No. 52A15SW0019), 41 p. Oja, R.V. 1969. Report on the Airborne Radiometric Survey, Greenwich Lake Area.

Assessment Report, Univex Exploration and Development Corporation (AFRI File No. 52A15SW0020), 5 p.

Oja, R.V. 1970. Drill Logs. Assessment Report, Univex Exploration and Development

Corporation (AFRI File No. 52A15SW0015), 25 p. Ontario Geological Survey. 1991. Bedrock geology of Ontario, west-central sheet.

Ontario Geological Survey, Map 2542, scale 1:1,000,000. Scott, J.F. 1987. Uranium Occurrences of the Thunder Bay-Nipigon-Marathon Area.

Ontario Geological Survey Open File Report 5634, 150 p. Sutcliffe, R.H. 1991. Proterozoic geology of the Lake Superior area. Ontario Geological

Survey, Special Volume 4, pp.627-658. Thurston, P.C. 1991. Archean geology of Ontario: Introduction. Ontario Geological

Survey, Special Volume 4, pp. 73-78. Webster, B. 1979. Report on TURAM and Induced Polarization Surveys, Greenwich

Lake Grid, Thunder Bay, Ontario. Assessment Report, Greenwich Lake Exploration Ltd. (AFRI File No. 52A15SW0002), 9 p.

Page 29: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

1

APPENDIX A: Certificates of Qualifications

Page 30: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

I, Tom Setterfield, PhD, P.Geo. do hereby certify that: 1. I am currently one of the principals of GeoVector Management Inc.

Suite 312, 10 Green St., Ottawa, Ontario, K2J 3Z6

2. I graduated with a BSc degree in Geology and Chemistry from Carleton University in 1980. In addition, I have obtained an MSc in Geology from the University of Western Ontario in 1984, and a PhD in Earth Sciences from the University of Cambridge in 1991.

3. I am a member of the Association of Professional Geoscientists of Ontario

(membership #0103). 4. I have worked as a geologist for a total of 28 years since my graduation from

university. 5. I compiled the Previous Work on the Greenwich Lake property and wrote the

bulk of this assessment report. I visited Greenwich Lake property on June 23, 2008.

Dated this 24th Day of April, 2009.

Tom Setterfield

Page 31: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

2

I, Tony L Gilman, of the City of Victoria, Province of British Columbia, Canada, do hereby certify that: (1) I am a Geologist and Project Manager for Mega Uranium Ltd. (2) I reside at P3 – 1061 Fort St., Victoria, British Columbia, Canada, V8V 5A1. (3) I am a graduate of the University of New Brunswick with a Bachelor of Science in

Geological Engineering (2000). (4) I am a graduate of the Pennsylvania State University with a Master of Science degree

in Geology (2006). (5) I have been practicing my profession continuously since 2000. (6) I am a member in good standing of the:

• Association of Professional Engineers and Geoscientists of British Columbia (APEGBC)

• Prospectors and Developers Association Canada (PDAC) • Association of Mineral Exploration British Columbia (AMEBC) • Geological Society of America (GSA)

(7) I helped write this assessment report.

Tony Gilman

Page 32: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

3

APPENDIX B: Certificates of Assay

Page 33: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

4

Quality Analysis ... Innovative Technologies

Mega Uranium Ltd.

130 Kings Street West Toronto Ontario M5X lAS Canada

ATTN: Tom Setterfield

Date Submitted : 26·Jun·08

Invoice No.: A08·3561

Invoice Date: 29·Jul·08

Your Reference: Greenwich Lake

CERTIFICATE OF ANALYSIS

2 Rock samples were submitted for analysis.

The following analytical package was requested: Code 1 H INAA(INAAGEO)fTota l Digestion ICP(TOTAL)

REPORT A08·3561

This report may be reproduced without our consent. If only selected portions of the report are reproduced , permission must be obtained. If no instructions were given at time of sample submittal regarding excess material , it will be discarded within 90 days of this report . Our liability is limited solely to the analytical cost of these analyses. Test resu lts are representative only of material submitted fo r analysis.

Notes: Elements which exceed the upper limits should be analyzed by assay techniques. Some elements are reported by multiple techn iques. These are indicated by MULT.

ACTIVATION LABORATORIES LTD.

CERTIFIED BY :

Elitsa Hrischeva, Ph.D.

Quality Control

1336 Sandhill Drive, Ancaster, OntarIO Canada L9G 4V5 TELEPHONE +1 9056489611 or +1.8882285227 FAX +1 .905 648.9613

E-MAIL [email protected] SITEhttp.llW..Nw. actiabslnt.com

Page 34: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

5

Activation Laboratories Ltd. Report: A08-3561 Analyto Symbol Ao " Co C' ". " M z" " " B. B, Bi B, C. C. C, C, Eo " "' "' Unit Symbol ppO ppm ppm

"""' ,pm """' ppm ppm • , ppm ppm ""m """' ""m • p,"" ppm p,"" """' % """' p,"" ppO

Detection Limit " " 0.01 0.01 " " " 0.01 " 0.01

Analysis Method 'NAA MULT TD·ICP T().ICP TO-IC? TD-Ie? MULT MULT TO-Ie? TD-Ie? 'NAA 'NAA TO·le? TO·lep 'NAA TD-Ie? 'NAA 'NAA 'NAA 'NAA 'NAA 'NAA 'NAA 'NAA INAA I TO- INAA I TO· INAA I TO.

'C' 'C' 'C'

G R487 < Z '" 0.3 '" 0.3 " " " '" 0.D1 5.83 U "" <Z '" 0,5 ' .00 " " 0 .68 < , < , < ,

GR4eg < Z , .. " z.e '" > 20.0 '" 35.1 < 50 « <D,S '" 0.Q1 < , '" 0.2 37,() < , < , < ,

Page 2 of 5

Page 35: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

6

Activation Laboratories Ltd. Report: A08·3561 iAna1yte SymbOl K M, Mo N. " SO " '" " T. " '" V W Y " C, N<> 'm '" " " Unit Symbol % % "m % % """ "m """ """ "m ""'" % """ ppm """ p,," "m """ ",m p,," """ % """ ppm

Detection Limit 0.01 0.01 0.0 1 0.001 " ,., ,., " om ' .2 " ,., , ,., 0,01 " ' .2

Analysis Method TD-Iep TD-Iep TO·lep 'NAA TO-Iep 'NAA 'NAA 'NAA 'NAA TO-Iep ,- TO· lep 'NAA ,"AA TO-Iep 'NAA TD-Iep 'NAA 'NAA 'NAA 'NAA 'NAA 'NAA 'NAA

G R. 87 3.93 0 .12 " U 4 0 ,003 '" '" 0.1 L. " ,., < 0,5 '" 16 .7 125 " < , ,., < , " <; 0.01 <; 0.5 <; 0.2

G R4M 00. <; am " 0,02 <; 0.001 < " <; 0.1 <; 0.1 " < 0.5 <; 0.01 .. , " " < , " " < , '" 0.1 '" 0.01 '" 0 .5 "

Page 3 of 5

Page 36: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

7

Activation Laboratories Ltd. Report: A08-3561 nalyte Symbol L, Mm

Unit Symbol "'" Detection l imit 0.05

nilllysis Method 'NAA 'NAA GR-487 < 0.05 1.45

GR4&e < 0.05 2,48

Page 4 of 5

Page 37: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

8

Quality Control

nalyte Symbol

Unit Symbol

Detection Limit

Analysis Method

GXR·l Mus

GXR·l Cell

DH-la Meas

DH·la Cert

DNC-l Meas

DNC-l Cert

GXR·. Meas

GXR·. CM

GXR·2 Meas

GXR·2 Cert

SOC·l Meas

SOC-I Cert

SC(}'1 Meas

SC(}'1 Cert

GXR-6 Meas

GXR-&Cert

OREAS 13P MeltS

OREAS 13P Celt

Me1ho1i Bialik Method Blank

" "'" 03

Co " "'" 03

"" "'"

" "'"

Activation Laboratories Ltd.

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'"

.. "'"

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Report:

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Page 38: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

!!

!!!!

!

!

!

!!

!!

383

395

394 393

392

391

390389

388 387 - Sample 488

386 - Sample 487385

384

4244234

4211692

4244233

4244231

4244232

4244236

4211690

4211693

3014754

4211691

3014745

4244235

4211694

4207834

4244237

4211695

360000

360000

361000

361000

362000

362000

363000

363000

364000

364000

365000

365000

366000

366000

5402

000

5402

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5404

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5406

000

5406

000

5408

000

5408

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5410

000

5410

000

0 1 20.5Kilometers 1:20,000

Legend! Waypoints and Sample Locations

Contour

Streams and Rivers

Greenwich Lake Property Claims

Lakes and Ponds

Map 2: Location of Waypoints and Samples on the Greenwich Lake Property, NAD 83, UTM Zone 16

Greenw

ich Lake

Page 39: GEOLOGICAL RPT GREENWICH LAKE AREA - Ontario · The Mid-continent Rift is roughly coincident with Lake Superior and with the southern margin of the Archean Superior Province (Fig.

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0 1 20.5Kilometers

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LegendGreenwich Lake Property Claims

Contour

Streams and Rivers

Lakes and Ponds

Map 1: Claims Comprising the Greenwich Lake Property, NAD 83, UTM Zone 16